Tuesday, October 16, 2012

Apple and Samsung move from love/hate to hate/hate

Apple reportedly reducing Samsung's role in component manufacturing

Apple seems to be moving to reduce its reliance on Samsung for the manufacture of the A-series processors found in iOS devices, and are possibly planning a move to another company for the production of future chips. While Apple and Samsung have been at odds in the smartphone market, they've remained close partners in manufacturing. The increasing rivalry between the two companies when it comes to the former is cited as the reason for their deteriorating relationship when it comes to the latter. The The Korea Times reports that love-hate might be turning into pure hate.

According to industry sources, Apple has not collaborated with Samsung in the process to develop its A6 microprocessor used in its latest iPhone 5. Samsung has handled the manufacturing of the processors used in previous iPhones and believed to have contributed in their design to some degree.

Apple is still relying on the Korean firm to manufacture its chips but has made it clear it will no longer use its rival?s technology, according to a senior Samsung official.

In addition to several lawsuits, Apple has hired a senior Samsung chip designer away from the company at a crucial time when both companies are intensifying their chip design efforts. The hire further drove the wedge between the two companies. A split makes the most sense for Apple, who undoubtedly loathes using a rival as the manufacurer of the brain of their most important devices and is bringing an increasing amount of chip design in-house. Samsung, on the other hand, stands only to lose the multibillion-dollar Apple contract if and when Apple makes the transition away from Samsung for new chip production.

Source: The Korea Times



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